The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-12-02
BUSINESS OF THE BANKS.
THE COMPTROLLER oF THE CUR,
RENCY'S REPORT.


3,o61 of the 3,eO5 National Banks Or
ganized in Operation Oct. 31--A Net
Increase of $50, 1915 inlthe Ma
tional Bank Capital--A Net Decrease
in the Circulation of $5o,4e6,5eo.
WASHINGTON, Dec. 1.-The twenty fifth
annual report of the Comptroller of the
Currency, now in print, will be presented
TO Congress on the first day of its session.
The report shows that the total number of
national banks organized up to Oct. 81, is
3,s05, of which 625 have gone into voluntary
liquidation, and 119 have failed, leaving in
operation at that date S,06l The total
number of new banks formed during the
last year is 225 The total number closed
during the year is 80, of which 25 went into
voluntary liquidation, and failed.
WHERE THE NEW BANKS ARE.
III new banks comprise in New En-
gland, 39 in the Middle States, 80 in the
Southern States, 107 in the Central States
and 30 in the Western States and Territories.
Of the failed banks 1 was in New Eng land,
2 in the Middle States, 4 in the Southern
States and in the Central States.
The gross increase in the national
bank capital during the year amounts
to S36,3a4,775, of (which 50, ,S6S, ,OO5
represents an increase of capital by
banks existing Nov. l, 1886. There has
been, however, a decrease of capital of So,
1922, 450, of which s4, ,0S7 $50 is the aggregate
capital of thirty-three banks which went
into voluntary liquidation and failed, and
the remainder represents a decrease of capl-
tai by banks still in operation. The net in
crease of capital for the year is, therefore,
$50, ,572, 1926.
A DECREASE IN CIRCULATION.
On the other hand there is net decrease
of $50, 495, 800 in the circulation represented
by bonds. The decrease resulting from the
surrender of circulation by bonds still in
operation is S57,770, ,475, and the decrease
caused by bonds going into voluntary
liquidation and falling is 81 1,274, $50, making
a gross decrease of $59, 9,044, ,S55, offset by
total increase Of IS, ,540, ,265, which consists
of an increase by the formation of new
banks of 81, ,592, 900 and an increase of cir
culation by previously existing banks to the
amount of S3,957,175.
Very full statistics have been collected
about State banks, savings banks, loan and
trust companies, and private bankers
throughout the country.
SOME OF THE SUGGESTIONS.
The suggestions made by the Comptroller
as to amendments to the laws are in the
form of a code revising and consolidating
all existing laws, with number of changes,
each of which is fully explained, and the
reasons for it set forth at considerable
length. The most important of the changes
recommended is that the minimum amount
of bonds to be deposited as security for cir
culation shall be 10 peS cent. of
the capital of banks of not
over $250,0OO, and $25, 200 for banks of
which the capital exceeds $250,000; also
that the semi-annual duty on circulation be
hereafter charged only on the amount is
sued upon bonds deposited in excess of the
minimum amount as above.
PART OF THE RESERVE.
He also recommends that national bank
notes be counted as part of the lawful re-
serve of banks. The existing provisions of
the law as to the responsibility of the Off
GERS and directors of bank are modified so
as to avoid heretofore existing obstacles to
their prompt and certain enforcement.
The restriction upon banks as to making
loans in excess of 10 per cent of their CAPT
tai 10 any one party is modified in respect
to loans upon collateral security and the
total limit is raised to 20 per cent. of the
capital and surplus.
RESERVE ON DEPOSITS.
The provisions as to the reserve upon de-
posits are modified so as not to include gov
ernment deposits in the amount upon which
the reserve is to be held.
The provision as to State taxation of
national banks is also modified
The proposed code has been transmitted to
every Senator and Representative with
codification of all the existing laws ON the
subject arranged in sections parallel with
those of the proposed code and accompanied
by letter explaining each of the more i'm.
portant changes and giving the reasons
for it.